FTSE starts in the red as black friday commences

The FTSE declined Friday morning as the vital Black Friday shopping season commenced, following subdued post-Thanksgiving trade.

The FTSE 100 dropped 28 points (0.4%) to 7,455, the FTSE 250 fell 28 points (0.2%) to 18,453, and the AIM All-Share declined 1 point (0.2%) to 717.

UK consumer confidence bounced back in November, GfK’s index rising 6 points to minus 24, despite lingering cost-of-living fears. Confidence in the economy over the next year also rose 6 points to minus 26. Lloyds Bank said confidence may increase further after October’s lower-than-expected inflation and the autumn statement’s national insurance cuts.

US markets were closed Thursday for Thanksgiving. A shortened session will occur on Friday, with PMI data due at 14:45 GMT. Retailers expect record Black Friday-Cyber Monday sales, with the National Retail Federation predicting over 182 million shoppers will spend this weekend.

In the FTSE 100, Legal & General edged up 0.4% after agreeing to a £4.8 billion full buy-in for Boots’ pension scheme, securing 53,000 members’ benefits in the UK’s largest single transaction by premium size.

Sage Group fell 1.5% as Canaccord downgraded the enterprise software firm to “sell” from “hold.”

On AIM, Team17 plunged 30% despite strong Black Friday and Christmas sales expectations, warning some titles underperformed. It now expects at least £28.5 million 2023 adjusted Ebitda, including up to £11.5 million title impairments, down from 2022’s £48.8 million.